The GBP/USD currency pair on Tuesday pulled back from the trendline resistance at 1.2227 before funding support at about 1.2167. The currency pair continues to trade within an ascending channel formation in the 60-min chart. 

The pair also remains a few levels above the 100-hour moving average line despite the late pullback. As a result, the currency pair still has a lot of room left to run before reaching the oversold levels of the 14-hour RSI.

GBP/USD Fundamentals Overview

From a fundamental perspective, the GBP/USD currency pair is trading at the back of a relatively busy period in both markets. On Tuesday, the US consumer price index for January outperformed the (YoY) forecast of 6.2% with a change of 6.4%. On the other hand, the (MoM) CPI matched the estimated change of 0.5%. Elsewhere, the CPI ex-food and energy beat the expected (Yoy) change of 5.5% with a change of 5.6%, while the (MoM) equivalent was in line with the estimated change of 0.4%.

In the UK, the average earnings excluding bonuses for the 3-month period ending December 31, 2022, outperformed the expected change of 6.5% with a change of 6.7%. On the other hand, average earnings including bonuses for the period missed the expected change of 6.2% with a change of 5.9%. The claimant count for January fell to -12.9k down from 3.2k in the previous period, while the claimant count rate remained unchanged at 3.9%. The ILO unemployment rate for January also remained unchanged at 3.7% in January, in line with estimates.

GBP/USD Technical Analysis (the 60-min Chart)

Technically, the GBP/USD currency pair appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current run of gains toward 1.2227 or higher to 1.2298. On the other hand, the bears will be targeting potential pullback profits at about 1.2113 or lower at 1.2049.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to be trading within a sideways channel formation after recovering from a major pullback. This indicates a determination by the bulls to maintain control of the currency pair.

Therefore, they will be looking to pounce on extended gains at about 1.2227 or higher at 1,2439. On the other hand, the bears will be targeting long-term pullbacks at about 1.1844 or lower at 1.1641.